Oppenheimer New York Tax-Exempt Fund
Semiannual Report March 31, 1996
[Picture of Man and Woman] "We want
investment
income that
won't add
to our
taxes."
[Oppenheimer Logo]
<PAGE>
This Fund is for people who need income that's exempt from income taxes.
News
Standardized Yields
For the 30 Days Ended 3/31/96:(4)
Class A
4.60%
Class B
4.06%
Class C
3.71%
Beat the Average
Total Return for the 3-Year Period Ended 3/31/96:
Oppenheimer New York
Tax-Exempt Fund
Class A (at NAV)(3)
15.56%
Lipper N.Y. Municipal Debt
Funds Average(5)
14.87%
How Your Fund Is Managed
Oppenheimer New York Tax-Exempt Fund invests in a diversified portfolio
consisting primarily of investment grade New York tax-free municipal bonds. As a
Fund shareholder, you receive income that is free from federal, New York State,
and New York City income taxes.(1) Your income dividends do not increase your
income the way taxable investments do, so you can keep more of what you earn.
Performance
Total returns, without considering sales charges, for the 6 months ended 3/31/96
for Class A, B and C shares were 3.65%, 3.18% and 3.11%, respectively.(2)
Your Fund's average annual total returns for Class A shares for the 1-,
5-, and 10-year periods ended 3/31/96 were 2.60%, 6.57% and 6.76%, respectively.
For Class B shares, average annual total returns for the 1-year period ended
3/31/96 and since inception of the Class on 3/1/93 were 1.92% and 3.12%,
respectively. For Class C shares, total return since inception on 8/29/95 was
3.25%.(3)
Outlook
"Our outlook for the Fund remains positive, especially as both New York State
and City continue to experience a slow but steady economic recovery, which can
only help the credit quality of their bonds. After the past year's dramatic
rally, we feel that the municipal bond market will return to normal, which means
returns on municipal bonds should derive primarily from income rather than
appreciation."
Robert Patterson, Portfolio Manager
March 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. Past performance does not guarantee future results.
Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original cost.
1. A portion of the distributions paid by the Fund may be subject to federal and
state income taxes. For investors subject to federal and/or state alternative
minimum tax (AMT), the Fund's distributions may increase this tax. Capital gains
distributions, if any, are taxed as capital gains.
2. Based on the change in net asset value per share for the period shown. Such
performance would have been lower if sales charges were taken into account.
3. Class A returns show change in share price, reinvestment of dividends and any
capital gains, after deducting the current maximum initial sales charge of
4.75%. Class A shares were first publicly offered on 8/16/84. The Fund's maximum
sales charge rate on Class A shares was lower during a portion of the periods
shown, so that actual investment performance would be greater. Class B returns
show change in share price from 3/31/95 and 3/1/93 (inception of class) and the
deduction of the applicable contingent deferred sales charge of 5% (1-year) and
3% (since inception). Class C returns show change in share price from 8/29/95
after deducting the 1% contingent deferred sales charge. An explanation of the
different total returns is in the Fund's prospectus.
4. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 3/31/96, divided by the maximum offering price
at the end of the period, compounded semiannually and then annualized. Falling
net asset values will tend to artificially raise yields.
5. Source: Lipper Analytical Services, 3/31/96, an independent mutual fund
monitoring service. The Lipper total return average for the 3-year period was
for 55 N.Y. municipal debt funds. The average is shown for comparative purposes
only. Oppenheimer New York Tax-Exempt Fund is characterized by Lipper as a N.Y.
municipal bond fund. Lipper performance does not take sales charges into
consideration.
2 Oppenheimer New York Tax-Exempt Fund
<PAGE>
[PHOTO OF BRIDGET A. MACASKILL]
Bridget A. Macaskill
President
Oppenheimer
New York Tax-Exempt
Fund
Dear Shareholder,
As we entered the 1996 presidential election year, the U.S. tax code had, once
again, become a major campaign issue.
While the possibility of significant tax reform that would affect
municipal bonds now appears to be fading, the downward pressure on municipal
bond prices created by those potential proposals has continued, offering a great
opportunity for investors seeking income that is exempt from federal taxes. And
as you may already know, municipal bonds are virtually unique in their ability
to generate tax-free income.
During early 1996, long-term interest rates as measured by the 30-year
Treasury bond, have been volatile, rising from 6% to almost 7%. As a result,
most fixed-income securities have offered little in the way of capital
appreciation. Therefore, the focus for bond investors has been on yield, making
the yield relationship between municipal bonds and U.S. Treasury bonds all the
more important.
Municipal bonds have been trading at yields of more than 90% of U.S.
Treasury bond yields, compared to nearly 80% prior to the tax-reform debate.
When you convert the tax-exempt rates to taxable-equivalent rates, municipal
bonds offer as much as a 30% premium over Treasurys. Few investments with the
creditworthiness of municipal bonds can claim such a high return, although, of
course, U.S. Treasury bonds are more creditworthy than municipal bonds. In
addition, with inflation at less than 3%, the inflation-adjusted returns of
municipal bonds are, indeed, compelling.
Another way of viewing high yields is that municipal bonds are
inexpensively priced, with values discounted for the risk of tax reform.
However, we have seen how difficult it is for a partisan Congress and the
President to agree on complex reform legislation, such as healthcare or a
balanced budget. If tax reform is deferred or tabled indefinitely, the value of
municipal bonds would likely readjust to normal levels. This would create an
opportunity for current investors to achieve high yields and perhaps enjoy
capital appreciation.
As interest rates fluctuate and the prospects for tax reform continue
to be unclear, the net asset value of municipal bonds will continue to be
volatile. But overall, patient municipal bond investors should continue to
expect, over time, taxable-equivalent returns which compare favorably to taxable
investments of similar risk.
It's important to remember, however, that unlike U.S. Treasury bonds,
municipal bonds are not federally guaranteed. So whether a bond is a general
obligation of a municipality or a revenue bond used to finance education,
housing, public works or transportation, our managers perform rigorous credit
analysis of the issuer. This analysis is critical to our investment selection
process.
Your portfolio manager discusses the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds, and we look forward to helping you reach your investment goals
in the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 19, 1996
3 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Q + A
[PHOTO OF ROBERT PATTERSON WITH LEN DARLING] [PHOTO OF MICHAEL MACIOLEK]
Q What
is your
outlook
for the Fund?
An interview with your Fund's managers.
How has the Fund performed over the past six months?
The Fund has performed quite well over the period due largely to the strong
rally in the domestic bond market. We were able to take advantage of the rally,
and outperform the majority of our peers, by boosting total return through
additional price appreciation.
What investments or market conditions made positive contributions to
performance?
A primary contribution to the Fund's good performance was an increase in the
demand for municipal bonds at the same time that there was a reduction in the
supply. This situation was created by the general rally in bonds and the fact
that there were relatively few new municipal bonds issued over the period.
Additionally, prices were further supported as interest rates began to decline
and issuers began buying back their bonds in an attempt to refinance at lower
rates.
Beyond the predominately positive market environment, our investments
in pre-refunded bonds did particularly well. They performed well relative to
other municipal securities because, as their name suggests, prerefunded bonds
are scheduled to be redeemed within five to seven years. Therefore, they were
less affected by the talk of tax reform.(1)
Did any investments not perform as expected?
Over the period, the only major negative factor in the market was the impact of
proposed federal tax reform legislation, which prevented many municipal bonds
from undergoing the kind of appreciation that was experienced by U.S. Treasury
securities. However, the general rally in bonds helped
[PHOTO OF CARYN HALBRECHT]
1. The Fund's portfolio allocation is subject to change.
4 Oppenheimer New York Tax-Exempt Fund
<PAGE>
[PHOTO ROBERT PATTERSON]
Facing page
Top left: Robert Patterson,
Portfolio Manager, with Len Darling,
Executive VP, Director of Fixed
Income Investments
Top right: Michael Maciolek,
Securities Analyst
Bottom: Caryn Halbrecht, VP,
Tax-Exempt Portfolio Manager
This page
Top: Robert Patterson
Bottom: Caryn Halbrecht with
Donna Compert, Municipal
Securities Trader
A Positive,
due to a slow,
but steady
economic
recovery.
to offset investor concerns about the negative effects of possible tax reform.
What areas are you currently targeting?
Recently, we've been concentrating our investments at either end of the bond
maturity spectrum, also known as using a "barbell" strategy. On the long end of
the maturity spectrum, we feel there is a lot of value, as prices have been
discounted due to possible tax reform, yet yields have remained high. On the
short end, we feel there is greater price stability, which offers a balance to
our investments on the longer end, which tend to be more volatile.
Another sector of the market we continue to emphasize is bonds with a
long "call protection" (typically, ten years), or bonds that are noncallable
until maturity. This feature makes it impossible for issuers to "call away" or
repay their bonds before maturity, thus helping us to take advantage of higher
yields for a longer amount of time as well as manage our income. We've also been
emphasizing state appropriation bonds which are issued to support the state and
city university systems and, as such, are backed by strong tuition revenues.
Finally, we're continuing to de-emphasize bonds issued by electric utilities due
to the negative impact that proposed deregulation would have on their revenue
streams.
What is your outlook for the Fund?
Our outlook for the Fund remains positive, especially as both New York
State and City continue to experience a slow but steady economic recovery, which
can only help the credit quality of their bonds. Also, because we believe the
negative impact of tax reform has already been reflected in lower bond prices,
if reform fails to happen, all municipal bonds--long bonds in particular--should
benefit. Though our outlook remains positive, after the past year's dramatic
rally, we feel that the municipal bond market will return to normal, which means
returns on municipal bonds should derive primarily from income rather than
appreciation. [ ]
[PHOTO CARYN HALBRECHT WITH DONNA COMPERT]
5 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Financials
Contents
Statement of Investments 7
Statement of Assets & Liabilities 13
Statement of Operations 14
Statements of Changes in Net Assets 15
Financial Highlights 16
Notes to Financial Statements 18
6 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Statement of Investments March 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
<S> <C> <C> <C> <C>
===================================================================================================================================
Municipal Bonds and Notes--98.8%
- -----------------------------------------------------------------------------------------------------------------------------------
New York--81.8% Buffalo, New York General Obligation Bonds,
6.65%, 12/1/13 Aaa/AAA/AAA $ 500,000 $ 545,797
-----------------------------------------------------------------------------------------------------
City of New York General Obligation:
Bonds:
Inverse Floater, 6.978%, 8/1/08(1) Baa1/BBB+ 9,250,000 8,772,515
Inverse Floater, 8.106%, 8/1/13(1) Baa1/BBB+ 5,000,000 4,770,734
Inverse Floater, 8.106%, 8/1/14(1) Baa1/BBB+ 8,150,000 7,798,261
Prerefunded, Series A, 7.75%, 3/15/03 Aaa/BBB+/A- 150,000 169,857
Prerefunded, Series B, 8.25%, 6/1/02 Aaa/AAA/AAA 50,000 59,106
Prerefunded, Series F, 8.25%, 11/15/13 Aaa/BBB+ 135,000 161,339
Prerefunded, Series F, 8.25%, 11/15/17 Aaa/BBB+ 7,820,000 9,358,678
Prerefunded, Series F, 8.40%, 11/15/09 Aaa/AAA/AAA 90,000 108,224
Series A, 7.75%, 8/15/16 Baa1/BBB+ 2,500,000 2,754,672
Series B, 8.25%, 6/1/07 Baa1/BBB+ 1,750,000 2,034,329
Series B, FSA Insured, Inverse Floater, 6.811%,
10/1/07(1) Aaa/AAA 7,500,000 7,769,280
Series C-1, 7.50%, 8/1/20 Baa1/BBB+ 200,000 219,217
Unrefunded Balance, Series A, 7.75%, 3/15/03 Baa1/BBB+/A- 150,000 165,083
Unrefunded Balance, Series B, 8.25%, 6/1/02 Baa1/BBB+/A- 50,000 57,482
Unrefunded Balance, Series F, 8.25%, 11/15/13 Baa1/BBB+ 15,000 17,327
Unrefunded Balance, Series F, 8.25%, 11/15/17 Baa1/BBB+ 680,000 785,486
Unrefunded Balance, Series F, 8.40%, 11/15/09 Baa1/BBB+/A- 10,000 11,602
Refunding Bonds:
Series B, MBIA Insured, 6.20%, 8/15/06 Aaa/AAA 3,500,000 3,783,566
Series D, MBIA Insured, 5.75%, 8/1/05 Aaa/AAA 450,000 471,824
Series F, 7.625%, 2/1/14 Baa1/BBB+ 350,000 383,797
-----------------------------------------------------------------------------------------------------
City of New York Health & Hospital Corp. Revenue
Refunding Bonds, Series A, AMBAC Insured,
Inverse Floater, 7.65%, 2/15/23(1) Aaa/AAA/AAA 8,300,000 7,363,502
-----------------------------------------------------------------------------------------------------
City of New York Housing Development Corp.
Multifamily Housing Revenue Bonds:
Glenn Garden Project, 6.50%, 1/15/18 NR/NR 2,975,222 2,883,981
Keith Plaza Project, 6.50%, 2/15/18 NR/NR 1,965,406 1,896,415
-----------------------------------------------------------------------------------------------------
City of New York Industrial Development Agency:
Civic Facility Revenue Bonds:
USTA National Tennis Center Project, FSA Insured,
6.375%, 11/15/14 Aaa/AAA 1,500,000 1,596,396
YMCA of Greater New York, 8%, 8/1/16 NR/NR 3,950,000 4,280,473
Revenue Bonds:
VISY Paper, Inc. Project, 7.80%, 1/1/16 NR/NR 6,800,000 6,832,843
VISY Paper, Inc. Project, 7.95%, 1/1/28 NR/NR 4,000,000 4,013,096
Special Facilities Revenue Bonds:
Terminal One Group Assn. Project, 6%, 1/1/15 A/A/A- 6,000,000 5,860,854
Terminal One Group Assn. Project, 6.125%, 1/1/24 A/A/A- 3,000,000 2,925,417
-----------------------------------------------------------------------------------------------------
City of New York Municipal Water Finance Authority
Water & Sewer System Revenue Bonds:
Prerefunded, Series A, 7.375%, 6/15/09 NR/AAA 3,625,000 4,006,020
Prerefunded, Series A, MBIA Insured, 7.25%, 6/15/15 Aaa/AAA 7,000,000 7,840,300
Prerefunded, Series B, 6.375%, 6/15/22 A/A-/A 225,000 247,725
Prerefunded, Series C, 7.75%, 6/15/20 Aaa/A- 17,250,000 20,014,483
Unrefunded Balance, Series B, 6.375%, 6/15/22 A/A-/A 6,625,000 6,833,296
</TABLE>
7 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
<S> <C> <C> <C> <C>
===================================================================================================================================
New York (continued) City of New York Municipal Water Finance Authority
Water & Sewer System Revenue Refunding Bonds,
Series A-1994, 7.10%, 6/15/12 A/A- $ 275,000 $ 301,978
-----------------------------------------------------------------------------------------------------
Dormitory Authority of the State of New York:
Revenue Bonds:
City University--Third General Resolution,
Series 2, 6.875%, 7/1/14 Aaa/AAA/A- 500,000 555,888
City University System, Prerefunded, Series A,
7.40%, 7/1/05 Baa1/BBB 500,000 566,107
City University System, Prerefunded, Series A,
7.625%, 7/1/20 Aaa/BBB 14,500,000 16,521,415
City University System, Prerefunded, Series F,
7.875%, 7/1/07 Aaa/BBB 7,000,000 8,043,049
City University System, Series V, 5.60%, 7/1/10 Baa1/BBB 10,880,000 10,365,712
Department of Health, Prerefunded, 7.70%, 7/1/20 Aaa/BBB 2,750,000 3,141,820
Department of Health, Series 1996, 5.75%, 7/1/17 Baa1/BBB/A 8,190,000 7,803,423
Judicial Facilities Lease, Escrowed to Maturity,
MBIA Insured, 7.375%, 7/1/16 Aaa/AAA 2,300,000 2,693,247
Menorah Campus, 7.30%, 8/1/16 NR/AA 195,000 217,017
Pooled Capital Program, Partially Prerefunded,
FGIC Insured, 7.80%, 12/1/05 Aaa/AAA/AAA 7,515,000 8,017,926
Rockefeller University, MBIA Insured, 7.375%, 7/1/14 Aaa/AAA 4,000,000 4,313,792
Revenue Refunding Bonds:
City University System, Second Series A, 5.75%,
7/1/18 Baa1/BBB 6,750,000 6,567,709
City University System, Series B, 6%, 7/1/14 Baa1/BBB 10,875,000 10,897,760
Columbia University, 5.75%, 7/1/15 Aaa/AA+ 750,000 752,856
Episcopal Health Project, 5.85%, 8/1/13 NR/AAA 500,000 507,498
Fordham University, FGIC Insured, 5.75%, 7/1/15 Aaa/AAA/AAA 9,100,000 9,141,068
New York University, Series A, MBIA Insured, 5%,
7/1/09 Aaa/AAA 9,000,000 8,587,772
Rochester Hospital, 5.55%, 8/1/12 NR/AAA 275,000 273,809
St. Vincent's Hospital, 7.375%, 8/1/11 Aa/AAA 150,000 167,122
State University Educational Facilities System:
Prerefunded, Series B, 7.25%, 5/15/15 Aaa/BBB+ 15,230,000 17,093,251
Prerefunded, Series B, 7.25%, 5/15/15 NR/AAA 1,735,000 1,947,261
Prerefunded, Series A, 7.70%, 5/15/12 Aaa/BBB+/A 9,000,000 10,252,314
Series A, 5.25%, 5/15/15 Baa1/BBB+ 23,090,000 21,733,924
Series A, 5.25%, 5/15/21 Baa1/BBB+ 5,010,000 4,465,748
Series B, 7%, 5/15/16 Baa1/BBB+ 9,020,000 9,677,765
Series B, 5.25%, 5/15/13 Baa1/BBB+/A 1,000,000 934,540
-----------------------------------------------------------------------------------------------------
Grand Central District Management Assn., Inc.
New York Business District Capital Improvement
Refunding Bonds:
5.125%, 1/1/14 A1/A 1,000,000 942,055
5.25%, 1/1/22 A1/A 2,500,000 2,307,662
-----------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority of New York:
Revenue Bonds, Series J, FGIC Insured, 6.375%, 7/1/10 Aaa/AAA/AAA 500,000 525,455
Revenue Bonds, Transportation Facilities Service
Contracts, Series 3, 7.375%, 7/1/08 Baa1/BBB 250,000 279,852
Revenue Refunding Bonds, Commuter Facilities Project,
Series B, MBIA Insured, 6.25%, 7/1/17 Aaa/AAA 350,000 361,568
-----------------------------------------------------------------------------------------------------
Municipal Assistance Corp. for the City of New York
Revenue Refunding Bonds, Series 57, 7.25%, 7/1/08 Aa/AA-/AA 220,000 225,927
-----------------------------------------------------------------------------------------------------
Nassau County, New York General Obligation Bonds,
Series L, AMBAC Insured, 6.25%, 10/15/09 Aaa/AAA/AAA 500,000 532,592
</TABLE>
8 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
<S> <C> <C> <C> <C>
===================================================================================================================================
New York (continued) New York State Energy Research & Development Authority:
Electric Facilities Revenue Bonds:
Consolidated Edison Co. Project:
Series A, 7.50%, 1/1/26 A1/A+ $ 280,000 $ 305,291
Series A, 7.75%, 1/1/24 A1/A+ 620,000 661,859
Series B, 7.375%, 7/1/24 A1/A+ 200,000 210,447
Long Island Lighting Co.:
Series A, 7.15%, 12/1/20 Ba1/BB+ 7,500,000 7,695,172
Series C, 6.90%, 8/1/22 Ba1/BB+ 9,200,000 9,301,466
Gas Facilities Revenue Bonds:
Brooklyn Union Gas Co. Project, Series B,
Inverse Floater, 10.03%, 7/1/26(1) A1/A/A 6,000,000 6,785,483
Brooklyn Union Gas Co. Project, Series D,
MBIA Insured, Inverse Floater, 7.549%, 7/8/26(1) Aaa/AAA/A 2,000,000 1,701,898
-----------------------------------------------------------------------------------------------------
New York State Environmental Facilities Corp.
Pollution Control Revenue Bonds:
State Revolving Fund, Series A, 6.60%, 9/15/12 Aaa/AAA/AAA 250,000 273,158
State Revolving Fund, Series C, 7.20%, 3/15/11 Aa/A+/AA 350,000 380,864
State Revolving Fund, Series E, 6.50%, 6/15/14 Aa/A/AA 500,000 531,982
State Revolving Fund-New York City Municipal Water,
5.875%, 6/15/14 Aa/A-/AA 14,050,000 14,329,649
-----------------------------------------------------------------------------------------------------
New York State General Obligation:
Bonds, 6.875%, 3/1/12 A/A- 500,000 547,566
Bonds, 7%, 2/1/09 A/A- 300,000 328,606
Refunding Bonds, 7.50%, 11/15/00 A/A- 500,000 559,785
-----------------------------------------------------------------------------------------------------
New York State Housing Finance Agency:
Multifamily Housing Revenue Bonds:
Secured Mtg. Program-A, 7.05%, 8/15/24 Aa/NR 350,000 362,021
Secured Mtg. Program-C, 6.95%, 8/15/24 Aa/NR 240,000 252,562
Revenue Refunding Bonds:
New York City Health Facilities, Series A, 7.90%,
11/1/99 Baa2/BBB+ 3,500,000 3,816,274
New York City Health Facilities, Series A, 8%,
11/1/08 Baa/BBB+ 3,240,000 3,678,475
State University Construction, Escrowed to Maturity,
Series A, 7.90%, 11/1/06 Aaa/AAA 1,750,000 2,048,228
Service Contract Revenue Bonds:
Prerefunded, Series A, 7.375%, 9/15/21 Aaa/AAA 9,050,000 10,471,564
Prerefunded, Series A, 7.80%, 9/15/20 Aaa/AAA 3,840,000 4,423,396
Series D, 5.375%, 3/15/23 Baa1/BBB 9,000,000 8,092,097
-----------------------------------------------------------------------------------------------------
New York State Local Government Assistance Corp.,
Revenue Bonds:
Prerefunded, Series A, 7%, 4/1/16 Aaa/AAA 4,000,000 4,503,915
Prerefunded, Series C, 7%, 4/1/21(2) Aaa/AAA/AAA 9,455,000 10,646,130
Prerefunded, Series D, 6.75%, 4/1/21 Aaa/AAA/AAA 4,700,000 5,291,255
Series A, 5.375%, 4/1/14 A/A/A+ 5,500,000 5,231,973
Series A, 6%, 4/1/24 A/A/A+ 1,000,000 1,002,697
Series A, 7%, 4/1/12 A/A/A+ 700,000 777,251
Revenue Refunding Bonds:
Series B, 5.50%, 4/1/21 A/A/A+ 10,000,000 9,405,859
Series C, 5%, 4/1/21 A/A/A+ 15,000,000 13,193,129
Series E, 5%, 4/1/21 A/A/A+ 500,000 448,755
</TABLE>
9 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
<S> <C> <C> <C> <C>
===================================================================================================================================
New York (continued) New York State Medical Care Facilities Finance Agency:
Revenue Bonds:
Hospital & Nursing Home Project, Prerefunded,
Series C, 7.70%, 2/15/22 Aa/AAA ` $ 590,000 $ 648,896
Hospital & Nursing Home Project,
Series D, 6.45%, 2/15/09 NR/AAA 360,000 378,737
Long-Term Health Care, Series C, CGIC Insured,
6.40%, 11/1/14 Aaa/AAA 2,800,000 2,916,231
Mental Health Services Facilities,
Prerefunded, Series A, 8.875%, 8/15/07 Aaa/AAA 3,000,000 3,262,449
Mental Health Services Facilities,
Prerefunded, Series B, 7.875%, 8/15/20 Aaa/AAA 5,445,000 6,274,817
Mental Health Services Facilities,
Series A, 7.70%, 2/15/18 Baa1/BBB+ 765,000 811,631
Mental Health Services Facilities,
Series A, 8.875%, 8/15/07 Baa1/BBB+ 6,800,000 7,270,682
Mental Health Services Facilities,
Series A, AMBAC Insured, 5.70%, 8/15/14 Aaa/AAA/AAA 500,000 494,356
Mental Health Services Facilities,
Series A, FGIC Insured, 6.375%, 8/15/17 Aaa/AAA/AAA 5,000,000 5,193,774
Mental Health Services Facilities,
Series B, 7.875%, 8/15/20 Baa1/BBB+ 8,145,000 9,041,609
New York Hospital, Series A, AMBAC Insured,
6.75%, 8/15/14 Aaa/AAA/AAA 500,000 544,039
St. Francis Hospital Project, Series 1988A, FGIC
Insured, 7.625%, 11/1/21 Aaa/AAA/AAA 2,690,000 2,911,115
St. Luke's Hospital Center Mtg., Prerefunded,
Series B, 7.45%, 2/15/29 Aaa/AAA 7,500,000 8,427,794
Revenue Refunding Bonds:
Huntington Hospital Project, Prerefunded, Series A,
8.125%, 11/1/14 Aaa/AAA 6,420,000 6,972,678
Mental Health Services, Series F, MBIA Insured,
5.375%, 2/15/14 Aaa/AAA 6,600,000 6,279,240
North Shore University Hospital, MBIA
Insured, 7.20%, 11/1/20 Aaa/AAA 250,000 272,187
Presbyterian Hospital, Series A, 5.25%, 8/15/14 Aa/AAA 17,440,000 16,382,035
-----------------------------------------------------------------------------------------------------
New York State Mtg. Agency Revenue Bonds:
Eighth Series C, 8.40%, 10/1/17 Aa/NR 1,700,000 1,764,097
Homeowner Mtg., Series 1, 7.95%, 10/1/21 Aa/NR 2,270,000 2,329,674
Homeowner Mtg., Series UU, 7.75%, 10/1/23 Aa/NR 1,990,000 2,071,530
Homeowner Mtg., Series VV, 7.375%, 10/1/11 Aa/NR 345,000 361,978
Inverse Floater, 6.275%, 10/1/24(1) NR/NR 9,000,000 6,782,741
Ninth Series B, 8.30%, 10/1/17 Aa/NR 1,720,000 1,763,745
Series 40-B, 6.40%, 10/1/12 Aa/NR 500,000 512,868
-----------------------------------------------------------------------------------------------------
New York State Power Authority:
General Purpose Revenue Bonds, Series Y, 6.50%, 1/1/11 Aa/AA- 2,500,000 2,655,780
General Purpose Revenue Bonds, Series Z,
6.625%, 1/1/12 Aa/AA- 315,000 338,235
Revenue Bonds, Prerefunded, Series V, 8%, 1/1/17 NR/AA 5,680,000 6,163,873
-----------------------------------------------------------------------------------------------------
New York State Thruway Authority:
General Revenue Bonds, Series A, 5.75%, 1/1/19 A1/A 10,000,000 9,775,710
Service Contract Revenue Bonds:
Local Highway & Bridge Project, 5.125%, 4/1/07 Baa1/BBB 500,000 472,622
Local Highway & Bridge Project, 7.25%, 1/1/10 Baa1/BBB 400,000 453,242
</TABLE>
10 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
<S> <C> <C> <C> <C>
===================================================================================================================================
New York (continued) New York State Urban Development Corp.:
Revenue Bonds:
Correctional Facilities Project,
Prerefunded, Series G, 7%, 1/1/17 Aaa/NR $ 2,000,000 $ 2,210,520
Correctional Facilities Project,
Prerefunded, Series G, 7.25%, 1/1/14 Aaa/NR 3,650,000 4,065,446
Series A, MBIA Insured, 5.50%, 4/1/16 Aaa/AAA/AAA 7,500,000 7,339,807
Revenue Refunding Bonds:
Correctional Facilities Project:
FSA Insured, 5.50%, 1/1/15 Aaa/AAA/A 10,000,000 9,658,780
Series A, FSA Insured, 5.50%, 1/1/16 NR/AAA/A 500,000 482,447
-----------------------------------------------------------------------------------------------------
Onondaga County, New York Resources Recovery
Agency Revenue Bonds, Resources Recovery
Facilities Project, 7%, 5/1/15 Baa/NR/A- 15,600,000 16,053,834
-----------------------------------------------------------------------------------------------------
Port Authority of New York & New Jersey:
Consolidated Revenue Bonds:
Sixty-Ninth Series, 7.125%, 6/1/25 A1/AA-/AA- 4,155,000 4,519,709
Sixty-Second Series, 8%, 12/1/23 A1/AA-/AA- 1,370,000 1,414,019
Sixty-Third Series, 7.875%, 3/1/24 A1/AA-/AA- 9,000,000 9,206,406
Consolidated Revenue Refunding Bonds:
Eighty-Ninth Series, 5%, 10/1/13 A1/AA-/AA- 500,000 466,270
Seventy-Eighth Series, 6.50%, 4/15/11 A1/AA-/AA- 250,000 263,185
Seventy-Seventh Series, 6.125%, 7/15/10 A1/AA-/AA- 400,000 410,416
-----------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Authority of New York:
General Purpose Revenue Bonds, Series A, 5%, 1/1/12 Aa/A+ 15,755,000 14,930,603
General Purpose Revenue Bonds, Series A, 5%, 1/1/15 Aa/A+ 7,500,000 6,907,387
General Purpose Revenue Bonds, Series X, 6%, 1/1/14 Aa/A+ 14,510,000 14,740,852
General Purpose Revenue Bonds, Series Y, 5.50%, 1/1/17 Aa/A+ 15,000,000 14,925,133
General Purpose Revenue Refunding Bonds,
Series B, 5%, 1/1/20 Aa/A+ 500,000 460,195
Special Obligation Revenue Refunding
Bonds, Series A, MBIA Insured, 6.625%, 1/1/17 Aaa/AAA 500,000 538,015
-----------------------------------------------------------------------------------------------------
646,890,055
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Possessions--17.0%
Puerto Rico Commonwealth Aqueduct & Sewer Authority
Revenue Bonds, Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 500,000 694,008
-----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth General Obligation
Refunding Bonds:
5.25%, 7/1/18 Baa1/A 20,000,000 18,214,438
7.625%, 7/1/10 NR/AAA 3,000,000 3,425,775
FSA Insured, Inverse Floater, 7.982%, 7/1/20(1) Aaa/AAA 11,500,000 11,181,116
Prerefunded, 7.70%, 7/1/20 NR/AAA 5,000,000 5,725,005
Series A, 6%, 7/1/14 Baa1/A 10,000,000 10,128,670
-----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation Authority Revenue Bonds:
Prerefunded, Series S, 6.50%, 7/1/22 NR/AAA 13,500,000 15,063,028
Series W, Inverse Floater, 7.166%, 7/1/10(1) Baa1/A 9,000,000 8,524,943
-----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority Special Tax Revenue Bonds,
Series A, 7.75%, 7/1/08 Baa1/BBB+ 6,000,000 6,454,488
-----------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority:
Revenue Bonds, Prerefunded, Series O, 7.125%, 7/1/14 Baa1/AAA 7,145,000 7,864,344
Revenue Bonds, Series O, 5%, 7/1/12 Baa1/A- 500,000 456,250
Revenue Refunding Bonds, Series N, 5%, 7/1/12 Baa1/A- 7,045,000 6,428,569
</TABLE>
11 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
<S> <C> <C> <C> <C>
===================================================================================================================================
U.S. Possessions (continued) Puerto Rico Housing Bank & Finance Agency Single
Family Mtg. Revenue Bonds, Homeownership-Fourth
Portfolio, Prerefunded, 8.50%, 12/1/18 Aaa/NR $ 1,580,000 $ 1,923,426
-----------------------------------------------------------------------------------------------------
Puerto Rico Industrial, Medical & Environmental
Pollution Control:
Facilities Financing Authority Revenue Bonds,
American Airlines, Inc. Project, Series A, 8.75%,
12/1/25 Baa1/BB+ 850,000 872,533
Facilities Financing Authority Revenue Bonds,
Warner Lambert Co. Project, 7.60%, 5/1/14 Aa3/NR 3,000,000 3,301,413
Revenue Bonds, American Home Products, 5.10%, 12/1/18 A2/NR 500,000 457,887
-----------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Guaranteed
Public Education & Health Facilities:
Revenue Bonds, Prerefunded, Series J, 7.25%, 7/1/17 Aaa/AAA 6,000,000 6,497,022
Revenue Bonds, Prerefunded, Series L, 6.875%, 7/1/21 Aaa/AAA 5,400,000 6,132,866
Revenue Refunding Bonds, Series M, 5.75%, 7/1/15 Baa1/A 11,500,000 11,314,838
-----------------------------------------------------------------------------------------------------
Puerto Rico Telephone Authority Revenue Bonds,
MBIA Insured, Inverse Floater, 7.063%, 1/16/15(1) Aaa/AAA 11,000,000 10,231,165
-----------
134,891,784
-----------
Total Municipal Bonds and Notes (Cost $766,136,960) 781,781,839
===================================================================================================================================
Short-Term Tax-Exempt Obligations--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
City of New York Housing Development Corp. Multifamily Mtg.
Revenue Bonds, James Tower Development,
Series A, 3.25% (Cost $600,000)(3) 600,000 600,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $766,736,960) 98.9% 782,381,839
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.1 8,630,807
----------- -----------
Net Assets 100.0% $791,012,646
=========== ===========
</TABLE>
1. Represents the current interest rate for a variable rate bond. Variable rate
bonds known as "inverse floaters" pay interest at a rate that varies inversely
with short-term interest rates. As interest rates rise, inverse floaters produce
less current income. Their price may be more volatile than the price of a
comparable fixed-rate security. Inverse floaters amount to $81,681,638 or 10.33%
of the Fund's net assets at March 31, 1996.
2. Securities with an aggregate market value of $2,562,405 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
3. Floating or variable rate obligation maturing in more than one year. The
interest rate, which is based on specific, or an index of, market interest
rates, is subject to change periodically and is the effective rate on March 31,
1996. This instrument may also have a demand feature which allows the recovery
of principal at any time, or at specified intervals not exceeding one year, on
up to 30 days' notice. Maturity date shown represents effective maturity based
on variable rate and, if applicable, demand feature.
As of March 31, 1996, securities subject to the alternative minimum tax amounted
to $79,330,980 or 10.03% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total investments at
value, is as follows:
<TABLE>
<CAPTION>
Industry Market Value Percent
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
Education $152,057,042 19.5%
General Obligation Bonds 124,786,455 15.9
Transportation 111,819,167 14.3
Lease/Rental 110,459,521 14.1
Utilities 104,459,510 13.4
Special Tax Bonds 60,431,097 7.7
Hospitals 47,258,145 6.0
Pollution Control 27,847,620 3.6
Housing 23,505,037 3.0
Corporate-Backed Municipals 15,477,772 2.0
Industrial Development 4,280,473 0.5
------------ ----------
$782,381,839 100.0%
============ ==========
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Statement of Assets and Liabilities March 31, 1996 (Unaudited)
<TABLE>
<S> <C> <C>
===================================================================================================================================
Assets Investments, at value (cost $766,736,960)--see accompanying statement $782,381,839
- -----------------------------------------------------------------------------------------------------------------------------------
Cash 1,107,527
-----------------------------------------------------------------------------------------------------
Receivables:
Interest 13,213,318
Shares of beneficial interest sold 654,834
-----------------------------------------------------------------------------------------------------
Other 33,495
-----------
Total assets 797,391,013
===================================================================================================================================
Liabilities Payables and other liabilities:
Dividends 2,618,757
Shares of beneficial interest redeemed 2,540,114
Distribution and service plan fees 483,857
Payable for daily variation margin on futures contracts--Note 5 337,500
Trustees' fees 230,630
Transfer and shareholder servicing agent fees 68,063
Other 99,446
------------
Total liabilities 6,378,367
===================================================================================================================================
Net Assets $791,012,646
============
===================================================================================================================================
Composition of Paid-in capital $787,444,598
Net Assets -----------------------------------------------------------------------------------------------------
Overdistributed net investment income (2,265,705)
-----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (9,697,846)
-----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 15,531,599
------------
Net assets $791,012,646
============
===================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on
net assets of $690,239,006 and 55,675,806 shares of beneficial interest
outstanding) $12.40
Maximum offering price per share (net asset value plus sales
charge of 4.75% of offering price) $13.02
-----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $100,212,061 and 8,080,317 shares of beneficial interest outstanding) $12.40
-----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $561,579 and 45,276 shares of beneficial interest outstanding) $12.40
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Statement of Operations For the Six Months Ended March 31, 1996 (Unaudited)
<TABLE>
<S> <C> <C>
===================================================================================================================================
Investment Income Interest $25,026,714
===================================================================================================================================
Expenses Management fees--Note 4 2,026,795
-----------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 817,710
Class B 485,213
Class C 875
-----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 268,965
-----------------------------------------------------------------------------------------------------
Shareholder reports 107,073
-----------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 93,759
-----------------------------------------------------------------------------------------------------
Custodian fees and expenses 57,318
-----------------------------------------------------------------------------------------------------
Legal and auditing fees 25,266
-----------------------------------------------------------------------------------------------------
Insurance expenses 13,580
-----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 4,763
Class B 2,975
Class C 163
-----------------------------------------------------------------------------------------------------
Other 12,209
------------
Total expenses 3,916,664
===================================================================================================================================
Net Investment Income 21,110,050
===================================================================================================================================
Realized and Net realized gain on:
Unrealized Gain Investments 1,068,169
Closing of futures contracts 940,788
------------
Net realized gain 2,008,957
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 3,895,832
------------
Net realized and unrealized gain 5,904,789
===================================================================================================================================
Net Increase in Net Assets Resulting From Operations $27,014,839
============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 1996 September 30,
(Unaudited) 1995
===================================================================================================================================
<S> <C> <C>
Operations Net investment income $ 21,110,050 $42,025,406
-----------------------------------------------------------------------------------------------------
Net realized gain (loss) 2,008,957 (14,337,688)
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 3,895,832 38,448,536
------------ ------------
Net increase in net assets resulting from operations 27,014,839 66,136,254
===================================================================================================================================
Dividends and Dividends from net investment income:
Distributions to Class A (18,907,473) (38,964,531)
Shareholders Class B (2,268,772) (4,185,973)
Class C (3,841) (60)
-----------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (1,474,250)
Class B -- (195,772)
===================================================================================================================================
Beneficial Interest Net increase (decrease) in net assets resulting from beneficial
Transactions interest transactions--Note 2:
Class A 11,972,083 (32,998,922)
Class B 8,483,890 14,665,131
Class C 538,668 25,059
==================================================================================================================================
Net Assets Total increase 26,829,394 3,006,936
----------------------------------------------------------------------------------------------------
Beginning of period 764,183,252 761,176,316
------------ ------------
End of period (including overdistributed net investment
income of $2,265,705 and $2,195,669, respectively) $791,012,646 $764,183,252
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------
Six Months
Ended
March 31, 1996 Year Ended September 30,
(Unaudited) 1995 1994 1993
<S> <C> <C> <C> <C>
==============================================================================================================
Per Share Operating Data:
Net asset value, beginning of period $12.29 $11.92 $13.50 $12.59
---------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .34 .69 .74 .73
Net realized and unrealized gain (loss) .11 .41 (1.46) 1.01
--- --- ----- ----
-------- -------- -------- --------
Total income (loss) from investment
operations .45 1.10 (.72) 1.74
---------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.34) (.70) (.72) (.75)
Distributions from net realized gain -- (.03) (.03) (.08)
Distributions in excess of net
realized gain -- -- (.11) --
-------- -------- -------- --------
Total dividends and distributions
to shareholders (.34) (.73) (.86) (.83)
-----------------------------------------------------
Net asset value, end of period $12.40 $12.29 $11.92 $13.50
======== ======== ======== ========
===================================================================================================
Total Return, at Net Asset Value(3) 3.65% 9.58% (5.55)% 14.33%
===================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $690,239 $673,050 $687,233 $756,934
---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $696,033 $659,465 $738,747 $652,327
---------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.42%(4) 5.76% 5.68% 5.66%
Expenses 0.89%(4) 0.90% 0.86% 0.91%
---------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 11.3% 15.2% 9.4% 39.1%
</TABLE>
<TABLE>
<CAPTION>
Class A
-------------------------
Year Ended September 30,
1992 1991
<S> <C> <C>
==================================================================================
Per Share Operating Data:
Net asset value, beginning of period $12.21 $11.61
-----------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .79 .81
Net realized and unrealized gain (loss) .47 .64
-------- --------
Total income (loss) from investment
operations 1.26 1.45
-----------------------------------------------------------------
Dividends and distributions to shareholders
Dividends from net investment
income (.75) (.81)
Distributions from net realized gain (.13) (.04)
Distributions in excess of net
realized gain -- --
-------- --------
Total dividends and distributions
to shareholders (.88) (.85)
-------------------
Net asset value, end of period $12.59 $12.21
======== ========
=================================================================
Total Return, at Net Asset Value(3) 10.72% 12.93%
=================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $530,260 $349,480
-----------------------------------------------------------------
Average net assets (in thousands) $436,876 $292,134
-----------------------------------------------------------------
Ratios to average net assets:
Net investment income 6.33% 6.81%
Expenses 0.96% 0.96%
-----------------------------------------------------------------
Portfolio turnover rate(5) 30.5% 8.9%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to September 30,
1995.
2. For the period from March 1, 1993 (inception of offering) to September 30,
1993.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Sales charges
are not reflected in the total returns. Total returns are not annualized for
periods of less than one full year.
16 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
Class B Class C
-------------------------------------------- -------------------------
Six Months Six Months Period
Ended Ended Ended
March 31, 1996 Year Ended September 30, March 31, 1996 Sept. 30,
(Unaudited) 1995 1994 1993(2) (Unaudited) 1995(1)
<S> <C> <C> <C> <C> <C> <C>
===================================================================================================================================
Per Share Operating Data:
Net asset value, beginning of period $12.30 $11.93 $13.50 $13.07 $12.30 $12.20
------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .30 .60 .64 .36 .33 .05
Net realized and unrealized gain (loss) .09 .42 (1.45) .44 06 .10
-------- ------- ------- ------- ---- ---
Total income (loss) from investment
operations .39 1.02 (.81) .80 .39 .15
------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.29) (.62) (.62) (.37) (.29) (.05)
Distributions from net realized gain -- (.03) (.03) -- -- --
Distributions in excess of net
realized gain -- -- (.11) -- -- --
-------- ------- ------- ------- ---- ----
Total dividends and distributions
to shareholders (.29) (.65) (.76) (.37) (.29) (.05)
------------------------------------------------------------------------
Net asset value, end of period $12.40 $12.30 $11.93 $13.50 $12.40 $12.30
======== ======= ======= ======= ==== ===
========================================================================================================================
Total Return, at Net Asset Value(3) 3.18% 8.75% (6.22)% 6.56% 3.11% 1.10%
========================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $100,212 $91,108 $73,943 $40,958 $562 $25
------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $97,160 $81,743 $61,008 $20,454 $177 $18
------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.64%(4) 4.95% 4.88% 4.45%(4) 4.31%(4) 3.67%(4)
Expenses 1.66%(4) 1.67% 1.65% 1.73%(4) 1.81%(4) 1.37%(4)
------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 11.3% 15.2% 9.4% 39.1% 11.3% 15.2%
</TABLE>
4. Annualized.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended March 31, 1996 were $88,767,086 and $96,124,696, respectively.
See accompanying Notes to Financial Statements.
17 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Notes to Financial Statements (Unaudited)
================================================================================
1. Significant
Accounting Policies
Oppenheimer New York Tax-Exempt Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek
maximum current income exempt from Federal, New York State & New York City
income taxes for individual investors that is consistent with the preservation
of capital. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager). The Fund offers Class A, Class B and Class C shares. Class A shares
are sold with a front-end sales charge. Class B and Class C shares may be
subject to a contingent deferred sales charge. All three classes of shares have
identical rights to earnings, assets and voting privileges, except that each
class has its own distribution and/or service plan, expenses directly
attributable to a particular class and exclusive voting rights with respect to
matters affecting a single class. Class B shares will automatically convert to
Class A shares six years after the date of purchase. The following is a summary
of significant accounting policies consistently followed by the Fund.
- --------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
asked price or the last sale price on the prior trading day. Long-term and
short-term "non-money market" debt securities are valued by a portfolio pricing
service approved by the Board of Trustees. Such securities which cannot be
valued by the approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, and Gains and Losses. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
- --------------------------------------------------------------------------------
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the six months
ended March 31, 1996, a provision of $17,332 was made for the Fund's projected
benefit obligations and payments of $6,672 were made to retired trustees,
resulting in an accumulated liability of $170,854 at March 31, 1996.
- --------------------------------------------------------------------------------
Distributions to Shareholders. The Fund intends to declare dividends separately
for Class A, Class B and Class C shares from net investment income each day the
New York Stock Exchange is open for business and pay such dividends monthly.
Distributions from net realized gains on investments, if any, will be declared
at least once each year.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of premium amortization. The character of the distributions
made during the year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax purposes. Also, due
to timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gain (loss) was
recorded by the Fund.
18 Oppenheimer New York Tax-Exempt Fund
<PAGE>
- ------
================================================================================
1. Significant
Accounting Policies
(continued)
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Original issue discount on securities purchased
is amortized over the life of the respective securities, in accordance with
federal income tax requirements. For bonds acquired after April 30, 1993, on
disposition or maturity, taxable ordinary income is recognized to the extent of
the lesser of gain or market discount that would have accrued over the holding
period. Realized gains and losses on investments and unrealized appreciation and
depreciation are determined on an identified cost basis, which is the same basis
used for federal income tax purposes. The Fund concentrates its investments in
New York and, therefore, may have more credit risks related to the economic
conditions of New York than a portfolio with a broader geographical
diversification.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
2. Shares of
Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended March 31, 1996 Year Ended September 30, 1995(1)
------------------------------- --------------------------------
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
Class A:
Sold 1,882,324 $23,993,621 6,112,332 $ 73,644,378
Issued in connection with the
acquistion of Quest for Value
New York Tax-Exempt Fund--Note 6 2,350,157 29,517,976 -- --
Dividends and distributions reinvested 1,043,406 13,138,461 2,407,670 28,865,634
Redeemed (4,348,768) (54,677,975) (11,415,065) (135,508,934)
---------- ----------- ----------- -------------
Net increase (decrease) 927,119 $11,972,083 (2,895,063) $ (32,998,922)
========== =========== =========== =============
- ----------------------------------------------------------------------------------------------------------------
Class B:
Sold 985,323 $12,414,250 1,966,120 $ 23,621,179
Dividends and distributions reinvested 117,763 1,482,812 240,583 2,892,411
Redeemed (430,656) (5,413,172) (998,399) (11,848,459)
---------- ----------- ----------- -------------
Net increase 672,430 $ 8,483,890 1,208,304 $ 14,665,131
========== =========== =========== =============
- ----------------------------------------------------------------------------------------------------------------
Class C:
Sold 53,324 $ 666,906 2,032 $ 25,059
Dividends and distributions reinvested 180 2,262 -- --
Redeemed (10,260) (130,500) -- --
---------- ----------- ----------- -------------
Net increase 43,244 $ 538,668 2,032 $ 25,059
========== =========== =========== =============
</TABLE>
1. For the year ended September 30, 1995 for Class A and Class B shares and for
the period from August 29, 1995 (inception of offering) to September 30, 1995
for Class C shares.
================================================================================
3. Unrealized Gains and
Losses on Investments
At March 31, 1996, net unrealized appreciation on investments of $15,531,599 was
composed of gross appreciation of $28,267,354, and gross depreciation of
$12,735,755.
19 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
4. Management Fees
And Other Transactions
With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of .60% on the first
$200 million of average annual net assets, .55% on the next $100 million, .50%
on the next $200 million, .45% on the next $250 million, .40% on the next $250
million and .35% on net assets in excess of $1 billion.
The Manager has agreed to reimburse the Fund for SEC fees incurred in
connection with the acquisition of Quest for Value New York Tax-Exempt Fund.
For the six months ended March 31, 1996, commissions (sales charges paid
by investors) on sales of Class A shares totaled $689,265, of which $147,904 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $451,547 and $5,397, of which $11,923 was paid to an
affiliated broker/dealer for Class B shares. During the six months ended March
31, 1996, OFDI received contingent deferred sales charges of $110,814 upon
redemption of Class B shares, as reimbursement for sales commissions advanced by
OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered
investment companies. OFS's total costs of providing such services are allocated
ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI
for a portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed .25% of the average annual net
assets of Class A shares of the Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that hold Class
A shares. During the six months ended March 31, 1996, OFDI paid $14,625 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
The Fund has adopted compensation type Distribution and Service Plans
for Class B and Class C shares to compensate OFDI for its services and costs in
distributing Class B and Class C shares and servicing accounts. Under the Plans,
the Fund pays OFDI an annual asset-based sales charge of .75% per year on Class
B shares that are outstanding for 6 years or less and on Class C shares, as
compensation for sales commissions paid from its own resources at the time of
sale and associated financing costs. If the Plans are terminated by the Fund,
the Board of Trustees may allow the Fund to continue payments of the asset-based
sales charge to OFDI for certain expenses it incurred before the Plans were
terminated. OFDI also receives a service fee of .25% per year as compensation
for costs incurred in connection with the personal service and maintenance of
accounts that hold shares of the Fund, including amounts paid to brokers,
dealers, banks and other financial institutions. Both fees are computed on the
average annual net assets of Class B and Class C shares, determined as of the
close of each regular business day. During the six months ended March 31, 1996,
OFDI paid $3,292 to an affiliated broker/dealer as compensation for Class B
personal service and maintenance expenses and retained $392,359 and $875,
respectively, as compensation for Class B and Class C sales commissions and
service fee advances, as well as financing costs. At March 31, 1996, OFDI had
incurred unreimbursed expenses of $3,577,491 for Class B and $9,732 for Class C.
20 Oppenheimer New York Tax-Exempt Fund
<PAGE>
================================================================================
5. Futures Contracts
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates. The Fund may also buy
or write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable or
payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include
the possibility that there may be an illiquid market and that a change in the
value of the contract or option may not correlate with changes in the value of
the underlying securities.
At March 31, 1996, the Fund had outstanding futures contracts to sell debt
securities as follows:
<TABLE>
<CAPTION>
Expiration Number of Valuation as of Unrealized
Date Futures Contracts March 31, 1996 Depreciation
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Bonds 6/96 450 $50,160,938 $113,280
</TABLE>
================================================================================
6. Acquisition of Quest for
Value New York
Tax-Exempt Fund
On November 24, 1995, Oppenheimer New York Tax-Exempt Fund acquired all of the
net assets of Quest for Value New York Tax-Exempt Fund, pursuant to an Agreement
and Plan of Reorganization approved by the Quest for Value New York Tax-Exempt
Fund shareholders on November 16, 1995. The Fund issued 2,350,157 shares of
beneficial interest, valued at $29,517,976, in exchange for the net assets,
resulting in combined net assets of $794,672,219 on November 24, 1995. The net
assets acquired included net unrealized appreciation of $1,513,911. The exchange
qualifies as a tax-free reorganization for federal income tax purposes.
21 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Oppenheimer New York Tax-Exempt Fund
================================================================================
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been
taken from the records of the Fund without examination
by the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer New York Tax-Exempt Fund. This report must
be preceded or accompanied by a Prospectus of
Oppenheimer New York Tax-Exempt Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
22 Oppenheimer New York Tax-Exempt Fund
<PAGE>
OppenheimerFunds Family
================================================================================
OppenheimerFunds offers over 50 funds designed to fit
virtually every investment goal. Whether you're
investing for retirement, your children's education or
tax-free income, we have the funds to help you seek
your objective.
When you invest with OppenheimerFunds, you can
feel comfortable knowing that you are investing with a
respected financial institution with over 35 years of
experience in helping people just like you reach their
financial goals. And you're investing with a leader in
global, growth stock and flexible fixed income
investments--with over 2.8 million shareholder accounts
and more than $50 billion under Oppenheimer's
management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to
exchange shares. And you can exchange shares easily by
mail or by telephone.(1) For more information on
Oppenheimer funds, please contact your financial
advisor or call us at 1-800-525-7048 for a prospectus.
You may also write us at the address shown on the back
cover. As always, please read the prospectus carefully
before you invest.
================================================================================
Stock Funds Disciplined Value Fund
Discovery Fund
Enterprise Fund
Global Emerging Growth Fund
Global Fund
Gold & Special Minerals Fund
Growth Fund
Oppenheimer Fund
Quest Global Value Fund
Quest Small Cap Value Fund
Quest Value Fund
Target Fund
Value Stock Fund
================================================================================
Stock & Bond Funds Asset Allocation Fund
Bond Fund for Growth
Disciplined Allocation Fund
Equity Income Fund
Global Growth & Income Fund
Main Street Income & Growth Fund
Quest Growth & Income Value Fund
Quest Opportunity Value Fund
Strategic Income & Growth Fund
Total Return Fund
================================================================================
Bond Funds Bond Fund
Champion Income Fund
High Yield Fund
International Bond Fund
Limited-Term Government Fund
Strategic Income Fund
U.S. Government Trust
================================================================================
Tax-Exempt Funds California Tax-Exempt Fund(2)
Florida Tax-Exempt Fund(2)
Insured Tax-Exempt Fund
Intermediate Tax-Exempt Fund
New Jersey Tax-Exempt Fund(2)
New York Tax-Exempt Fund(2)
Pennsylvania Tax-Exempt Fund(2)
Tax-Free Bond Fund
Rochester Division
Limited-Term N.Y. Municipal Fund
Rochester Fund Municipals
================================================================================
Money Market Funds Cash Reserves
Money Market Fund
================================================================================
Lifespan Balanced Fund
Growth Fund
Income Fund
1. Exchange privileges are subject to change or
termination. Shares may be exchanged only for shares of
the same class of eligible funds.
2. Available only to investors in certain states.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
(C) Copyright 1996 OppenheimerFunds, Inc. All rights
reserved.
23 Oppenheimer New York Tax-Exempt Fund
<PAGE>
[BACK COVER]
Information
General Information
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
Telephone Transactions
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PhoneLink
24 hours a day, automated
information and transactions
1-800-533-3310
Telecommunications Device
for the Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0360.001.0396 May 31, 1996
[Picture of Jennifer Leonard]
[Caption] Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[Oppenheimer Logo]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- ---------------------------------------------
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